Bill would protect coastal wells from fracking wastewater

By By Molly Parker, Wilmington StarNews

Published: Saturday, June 8, 2013 at 03:46 PM.

RALEIGH — Deep-well injection of fracking wastewater in coastal counties would remain unlawful under a House committee’s version of a controversial bill that came over from the Senate to fast-track fracking in the state’s Piedmont region.

The House Committee on Commerce and Job Development moved to significantly slow the Senate’s enthusiastic efforts to lift the state’s fracking moratorium. Under the committee’s version, the moratorium on fracking and disposing of wastewater deep underground would remain in place. Though permits could be issued as of March 1, 2015, they would not become effective without subsequent action by the General Assembly.

Largely, the committee’s vote punts to the Mining and Energy Commission to address deep-well injections and other critical issues related to fracking as part of its rule-making process. The Senate’s version would have lifted the statewide ban.

That said, the House committee’s actions do not take the possibility of deep-well injections off the table, but rather moves the decision down the road, said Cassie Gavin, director of government affairs for the N.C. Sierra Club.

Rep. Rick Catlin, R-New Hanover, sounded the alarm earlier this session about the possibility of fracking wastewater being shipped from the Piedmont region to the coast, where the land is believed to be porous enough for such underground disposal. His concerns raised significant debate about the issue of wastewater disposal from the fracking process.

Catlin said he’s satisfied with the House’s exclusion of in-ground disposal.

“I think it’s something we need to keep an eye on, but this bill does take that out right now,” he said.

RALEIGH — Deep-well injection of fracking wastewater in coastal counties would remain unlawful under a House committee’s version of a controversial bill that came over from the Senate to fast-track fracking in the state’s Piedmont region.

The House Committee on Commerce and Job Development moved to significantly slow the Senate’s enthusiastic efforts to lift the state’s fracking moratorium. Under the committee’s version, the moratorium on fracking and disposing of wastewater deep underground would remain in place. Though permits could be issued as of March 1, 2015, they would not become effective without subsequent action by the General Assembly.

Largely, the committee’s vote punts to the Mining and Energy Commission to address deep-well injections and other critical issues related to fracking as part of its rule-making process. The Senate’s version would have lifted the statewide ban.

That said, the House committee’s actions do not take the possibility of deep-well injections off the table, but rather moves the decision down the road, said Cassie Gavin, director of government affairs for the N.C. Sierra Club.

Rep. Rick Catlin, R-New Hanover, sounded the alarm earlier this session about the possibility of fracking wastewater being shipped from the Piedmont region to the coast, where the land is believed to be porous enough for such underground disposal. His concerns raised significant debate about the issue of wastewater disposal from the fracking process.

Catlin said he’s satisfied with the House’s exclusion of in-ground disposal.

“I think it’s something we need to keep an eye on, but this bill does take that out right now,” he said.

A 2012 law directed state mining and environmental officials to develop regulations for horizontal drilling and fracking, both of which involve boring into the earth or underwater to extract oil or gas. It authorized fracking but prohibited licensing until state regulators produced rules for it by October 2014.

The Senate bill set a date of March 2015 to begin giving out licenses without legislative approval.

Sen. Buck Newton, R-Wilson and the bill’s lead sponsor, said setting a firm date is important, so companies can prepare investments that will create jobs.

“The first thing that we want to do if we’re going to have jobs in North Carolina is we need to create an environment where there’s certainties, so that the industry that’s going to come here and invest their millions and billions of dollars understands what environment they’re getting into,” he said.

The House version also authorizes a study on dealing with the cost to local governments as a result of drilling. It also requires studies to create a restitution fund for defrauded landowners and to set tax rates for energy companies at the state level.

In addition to inland gas drilling, the bill addresses some concerns about potential offshore drilling for oil.

The House version sets aside $500 million in future oil and gas revenues for emergency responses to offshore oil disasters, with any revenues beyond that mark going to the general fund. The Senate bill sets aside $10 million for that purpose.

Rep. Paul Tine, D-Dare, said he’s concerned that the $500 million set aside won’t be enough in the event of a serious disaster. He’s not convinced horizontal drilling off the coast will do much for communities with a billion-dollar tourism industry.

“So we’d be taking a risk in this economy that drives all the jobs in our area without any return on investment or return on that risk for our community,” he said.